An outrageous move

Governor's bid to plunder local revenues is more bad fiscal policy

Now that California voters have resoundingly rejected the huge tax increases and irresponsible borrowing schemes put on the ballot by Gov. Arnold Schwarzenegger and the Legislature, Sacramento is preparing to plunder the revenues of cities and counties. The governor already has called for a $2 billion raid on local government funds, which is allowed under a constitutional amendment approved by voters in 2004.

Robbing cities and counties to spare the state from spending cuts merely fobs off on local governments the fiscal mess created by years of chronic overspending in Sacramento. It's outrageously unfair, especially after cities such as San Diego have already cut their budgets significantly to avert deficit spending. San Diego will be penalized for being fiscally responsible if Schwarzenegger and the Legislature carry out their plan.

The seizing of local revenues also is bad fiscal policy for the state, because constitutional provisions require that the money be paid back with interest within three years. The pay-back requirement means it would be even more difficult to balance future state budgets due to the irresponsible borrowing from cities and counties.

For San Diego and other municipal and county entities, a raid by Sacramento comes at the worst possible moment. Most local governments throughout California have seen their revenues drop because of the recession. Most already have been forced to make big cuts in their budgets.

Under the proposal advocated by Schwarzenegger, San Diego County would lose $70.3 million. The city of San Diego would lose $36.5 million. The 17 other cities in the region would take smaller hits.

For the city of San Diego, which has been aggressively cutting spending to maintain a balanced budget, a $36.5 million cut is no small matter. In fact, it is approximately the amount the city spends each year on its entire library system.

This week Mayor Jerry Sanders will join other mayors from California's 10 largest cities in a trip to Sacramento to lobby against the planned assault on local government funds. Given the desperation of the governor and the Legislature, it is unlikely the raid by Sacramento can be averted. But Sanders' cause is absolutely worth fighting for.